1/4/81 (+) 1 year 31/3/82 ( ) From 2/4/57 : Normal: 2.5L Case ( ) Case i 1/4/37 1/4/57 1/4/16 31/3/17 D/O/B ( ) P.Y. (+)

Transcription

1 1/4/81 1 year 31/3/82 ( ) Conclusion: BEL Upto 1/4/1937 : S/S/C : 5L () 2/4/1937 To 1/4/57 : S/C : 3L () From 2/4/57 : Normal: 2.5L Case Case ii Case i 1/4/37 1/4/57 1/4/16 31/3/17 D/O/B 80 years D/O/B P.Y years 31/3/17 1/4/17 31/3/17 1/4/17

2 Tata Eq. Oppo. Fund GROWTH PLAN 2000 Units Consolidating Plan Mr. X (Unit holder) Apparently, Trf.() But excluded Merge() Section 47(xix) 2,000 units of Tata Eq. Oppo. Fund (Growth Plan) 1,800 units of Tata Eq. Oppo. fund (Dividend Plan) Consolidated Plan DIVIDEND PLAN In Future, Transfer() Comp. of CG Cost Law: Silent() Rationally, Cost of 2000 Units of Growth Plan COA() Nature of CG P/O/H Law: Silent() Rationally, Prior Period of holding i.e. POH of 2000 units of Growth Plan Should also Consider ()

3 At Redemption : $ 20,000 Indian Co. F/C/B (e.g.$) Red. (after 3 Years) R / D/ B ( F.V. : 10,000/ ) $ 20,000 $ 20,000 () x 69/ (E/R of 1 $) = 13,80000 / Mr. X ( NR) R / D/ B : 10,000 / *S/C : 13,80,000 = $ / ( ) COA : $ CG : $ x 66 60,000/ Redemption ( ` ) E/R of 1$ =66/ ATPAR [ viz. : $ x 3/ ] F.A. 16 $ 20,000 $ 20,000 NiL X 66 NiL At Prem. of 1000/ ( 138 x ) 66 $ ( ) $ $ * $ $ x 66/ / [ 138 x 1000] Tax

4 AC : 50L Building Mr. X Advance : 60L Agreement to Sell (Bdg.) Consideration : 6Cr. Mr. Y 1/10/16 1/11/16 1/12/16 * * Regn. S/Duty S/D/V Circle of of Rates Bdg. Pay () Bdg. Revise 6Cr. S/D/V : 7.5Cr.

5 Mr. x Transaction Enter R S E [Located in IFSC ] () Consideration F/C [ ] STT X F.A LTCG 10 (38) [] STCG 111A [ 15%

6 SECTION 54GB : Upto 31/3/17, But in case of investment in Eligible Start ups: Upto 31/3/2019. Assessee Any P&M Except Second hand P&M. Before Due date of filing of ROI of transferor Installed at Office Building or Guesthouse. Individual HUF Computer or Comp. Software Office Appliance Any Vehicle. Any P&M 100% deduction Allowable () Means or Will be treated New asset in case of Technology driven Start ups so certified by Inter Ministerial Board. Transfer Net consideration Must be utilized for Subscription in Eq. Shares In an Eligible company Means Should utilize this Amount for Pur. Of New asset with in one year from the date of subscription in Eq. Shares. If company does not utilize this amount For Purchase of New Asset before the due date of ROI for transferor Such amount Must be deposited by the company in capital gain deposit Account. Quantum of Exemption : Capital Gain Х Residential property ( i.e. House/Plot) Incorporated between 1 st April of Year of transfer TO due date for ROI for transferor. Engaged in Business of mfg. of any article or thing or IN ELIGIBLE BUSINESS. Transferor has more than 50% Voting Power after subscription Invt. Qualifies for SME (25L in 10CRORES) or P&M is an ELGIBLE START UPS. Eligible Business means: Business which involves innovation, development, deployment,commercialisation of new products, processes or services driven by technology or intellectual property. Eligible Start ups means: A company engaged in eligible business which fulfils the following conditions, namely: it is incorporated between 1/4/2016 To 31/3/2019; Turnover of its business does not exceed ` 25 crore in any of the previous years between 1/4/2016 to 31/3/2021; and it holds a certificate of eligible business from the Inter Ministerial Board as notified by the Central Govt. Investment In New Asset by the Eligible Company (incl. Deposit) Net sales consideration If: Shares/ New Asset Transfer with in 5 years Exemption OR From Date of Acquisition Deposit Amt. Not finally With draw( ) Utilized in New asset within one year from date of subscription of equity Shares. with Earlier Prospective Taxable LTCG Year of violation Exempted C/G Means effect. ( )

7 X Ltd. Case I Case II 1/4/16 1/4/17 31/3/26 Running Business Ded : 90Cr. u/s 35 ABA 10years = 9Cr. P.A. S/Fee : 90Cr. Commencement of Actually () Business Paid Life of : 10 Years Spectrum Ded. : 90Cr. u/s 35ABA 9 years Life of Spectrum P.Y. : To P.Y. : = 10 Cr. P.A. P.Y. : To P.Y. : 25 26

8 SPECIFIED SERVICES 1. Indian resident or Online Digital Cyber Adv. Marketing space N R 2. NR (PE in India) CONSIDERATION PE In India Business/profession e.g. Google PAYER Exp. allow F.A.2016 CH VIII Equalization Levy [@ 6%] Income Tax D T A A Sec. 10(50) 1. Deduct (X) Not Applicable (a) : Income Tax or Exp. 2. Deduct () (b) : Expense (x) Deposit ( X) (X) Duty of PAYER (c) : Amt. > ` 1 Lacs upto D/D for ROI 40(a)( ib) 6% : Equalization Levy Deduct Equalization Levy Deposit Upto 7 th of Next Month. Equalization Levy (failure) Personally Liable

9 Mr.X Duty To Show 8% (44AD) F.A P.Y A.Y P.Y A.Y In otherwise case Suppose P.Y A.Y % 8% P.Y A.Y P.Y A.Y I II III IV P.Y A.Y V 44AD 5% 8% Books & Audit Books & Audit As per Normal Provisions 44 AD (8%) Sec. 44AD(4) Books Mandatory Audit only when TI > BEL

10 Located in.. IFSC () Company Income In Sec. F / C ( ) 115 JB i.e. C/ F/E ( ) 18.5% 9%

11 Section 10(34) & 115BBDA: Individual Resident HUF Assesses e.g. Firm Resi. Ind. Dividend 10 Lacs Mr. X Received D/co. : 9L F/Co. : 10L Total Div.: 19L (From Domestic Companies) Excess Div. Income Sec. 10(34) Sec. 115BBDA 115 BBDA No Tax Flat approach 10% BEL Relevance

12 Assessee Located In IFSC Company Established. On Or after 1/4/2016 () Income in X Ltd. F/C (i.e. C /F/E ) 1/4/2017 Div. Distribute (out of current Income) Dividend Distribute Partly Recd. by X Ltd. Sec i.e. DDT 115 0(8) Div Dis i.e. DDT

13 Section 115BA: Company Lower Tax Rate i.e. 25% Optional Assesses Total Income Domestic Co. () Any Article /Thing on or otter 1/2/2016 Mfg. / Prod. Busi. 32 (1) (iia) B/F Loss 32AC, 32AD 33AB,33ABA Attributable 35 (1) (ii) /(iia)/(iii)/35(2aa)/35(2ab) from 35AD Ded. 35CCC, 35CCD under 80 IA 80RRB (Except 80JJAA) Specified 10AA Sections (on L.H.S) DEDUCTION (X) STT () STCG Sec. 111A () LTCG Sec. 112 () Balance Income X 25% () Research Activity () Distribution () Co. Setup & Regd. () Must Exercise : Before Due Date of first ROI Once Exercise Can t withdraw () Same Any P.Y. other P.Y. Other Busi. Activity X Setoff. Effect Deemed To be Fully Given Means No further Allowance in Subséquent year (S)

14 Sec. 115 BBF : Assessee 1 Resident R / P / Y D/D For ROI 2 Patentee NO In India Dev. & Regd. Patent Royalty Allowance () 10% Option 75% Exp. () Before D/D Option for ROI Exercise ( ) L / I /P : 5 Years if violation () Next 5 years Re. Entry

15 F.A : 115 0(7) DDT Specified SP V Div. Dis. () date (out of its current income) To Busi. Trust Exempt u/s 10(23FC) Div. Pass on Exempt u/s 10(23FD) Unit holders SPV wholly owned Specified Domestic Company Business Trust

16 PQR Inc. ( F/Co.) Resident ( ) Fresh 4 years () R/O Resident POEM ( ) 1/15/18 1/10/2023 Sec. 115 JH () P.Y A.Y Comp. of TI Unabsorbed Dep. Setoff.... Collection & Recovery ROI P.Y Asstt. Complete POEM () Benefit Or Exemption or Relief () Condition Violation () Trf. Pricing Prov. Notification ( ) CG Condition

17 Section 115 TD : Registration Cancel Apply (x) Object Modify Fresh Regn. or () Fresh Appli. Reject () Deemed Sec. 11 & 12 12AA 1 Convert Into Non charitable Institution. Charitable Trust Specified Date 2 3 Similor Object (x) Merged with on Entity Or / And Regn. u/s 12AA (x) u/s To Trust / Instn. Regd. / Approved On Dissolution All assets [+} End of month of dissolution 12month* 12AA () 10(23C)[] Accreted Income MMR = Tax i.e. i.e. Transfer % Tax on Accreted Income ( must be paid with in 14 days from..) Trust FMV of ALL Assets EXCEPT ASSETS... Acquired out of agriculture Income. ( ) Regn. Total Liabilities Except Related Creation of trust Asset Acq. Accreted Income from On With in Dis. Trust 12AA () As on Specified Date () Dissolution 12 To or Value Months* () Instn. 10(23C)[] As per prescribed method.

18 (1) Charitable Convert into.. Trust Non charitable Institution 1 2 Time Limit for Expire Registration Cancel Appeal (X) : Appeal (i.e. 60 Days) [+] 14 Days* Regn. Cancellation order Appeal But Date of Receipt of 14* Date Specified Date Cancellation Regn. Cancellation [+} Days Confirmation Confirm Order Base (By Trust) Accreted Income Tax* () Modify its object (Not in confirmity of Existing Regn.) Application (X) : End of Relevant previous year 14 Days * Fresh Registration Appeal (X) : T/L for Appeal Expire () Appli. 14 Days* Reject Appeal But Date of Receipt Rejection of Rejection 14* Object : Modification : Adopt confirmation Days Confirm Order A/I Base Specified (By Trust) date Date *Tax S A M E

19 (2) Charitable Trust Merged with Entity Similar Obj. (X) Or/ And Regd. u/s 12AA (X) Date of Merger Specified Date 14 Days Base A/I Tax Pay (3) Ch. Trust Dissolution ALL Assets To Trust /Instn. 12AA 10(23C) [ ] End of Month of dissolution 12 Months DISTRIBUTION Date of Dissolution Time limit Expire 14 Days Failure in payment of Tax on Accreted Income (with in due time of 14 Days) Specified Date Pay. Base A/I Tax () From 15 day On unpaid Tax 1% P.M.. [ Sec. 115 TE] Sec. 115TF 1. Intt. u/s 220 (2) [ ] Assessee in Default 2. Penalty u/s 221 [ ] In case of Dissolution To treat as Non Also A / I / D Distribution Charitable Liable of Assets Instn. Uptotheextent To of assets Recd.

20 Section 206C (1D): Seller Sale of Bullion/Jewellery/Any other goods/providing any Service Consideration* Buyer & Any Part Bullion Jewellery Any other Goods Providing of Service In Cash *Amount > 2L *Amount > 5L *Amount > 2L *Amount > 2L 1% at the time of such receipt

21 X Ltd: 20/10/20 To 29/11/ Days 10/02/2021 Jan. Feb. 3L 10L 29/03/2021 (Jan) (Feb) (Mar) days 60 days 3/6/18 20/10/20 29/11/20 12/12/20 31/12/20 28/1/21 10/2/21 29/3/22 P.Y A.Y Months 31/12/19 12Months 31/12/20 1/11/20 T/L for TPO ROI Notice for Scru. Asstt. Section Days AO Refer T P O 31/11/20 T/L For AO HC Stay Order SC Stay Order Vacate 13 Days 29/11/20 60 days N/T/L For TPO (Nov.) (Dec.) (Jan.) F/T/L for TPO 12/12/20 47 days (Dec.) (Jan.) T/L for AO Effect of Amendment of Section 92CA(3A) F/T/L for AO [F.A. 16] 28 / 1/ / 1/ 2021

22 Sec. 143(1) : Section 139 or Return RI Sec. 142(1) If No ROL Adjustment by AO Declared Loss Adjustment Return Acknowledgement O/O/B/H Arithmetical Error Intimation AO Assessee Time Limit for sending the Intn Entry at two different Amount for same item in same ROI. Fails to furnish such information which is Required To substantiate his claim in ROI. Excessive claim of deduction i.e. Ded. claimed> Specified Limit Disallowance of loss claimed, if return of year of Loss was filed belatedly. AO No No Deemed Payable Refund Intimation Sum due Incorrect Claim Disallowance of expense shown in the audit report but not considered in computing Total income of return. Disallowance of deduction claimed u/s 10AA, 80 IA, 80 IAB, 80 IB, 80 IC, 80 ID or section 80 IE, if the return is filed belatedly. [ End of year of filing of Return one year] Addition of income appearing in Form 26AS / 16A / 16, not considered in computing TI in ROI. Total Income (Adjusted) Computation of tax & Interest Payable : ( ) TDS / TCS / Advance tax : ( ) Double Taxation Relief u/s 90/90A/91 : ( ) Self Asstt. Tax (including Interest) : Payable Sum / Refund due Intimation AO Assessee Shall be Granted :

23 AO Asstt. Power of higher Authorities Order Except Court e.g. Sec. 143(3) Cancel such Asstt. ( ) AND Sec. 153 (3) Direct for Fresh Asstt. SPL Prov. Time Limit? ITAT Order u/s 254 Copy CIT Revision Order Assessee CIT Year of Passing 9 Months Year of Receipt 9 by CIT Months Sec. 153 (3) Cancel ONLY Direct for Fresh Asstt.

24 Explanation 2(a): Mr. X A.Y. : A.Y. : Advance Income : 7L Related From A.Y. : ROI PGBP : 10L I/O/S : RI : 10L Advance Income : 7L Assessed Income : 17L 1/10/16 First Appeal CIT(A) AO ( ) Second Appeal ITAT Order Direction Advance u/s Income 254 Order referred 7L in favour of to in Mr. X Sec.153(6)(i) ROI PGBP : 3L I/O/S : RI : 3L Assessed Income : 3L Advance Re Open Income : 7L Reassessed Income : 10L Effect Sec. 150 Notice AT ANY TIME Sec. 153(6) Completion T/L:12Months To Exclude from TI of A.Y.: To include In TI of A.Y.: 08 09

25 Explanation 2(b) : A.Y. : Mr. X ROI : PGBP : 10L I /O/S : Returned Income : 10L Diversion of Income Belong ( ) Mrs. X ROI : Salary : 3L PGBP : I/O/S : 3L Sec /10/16 I/O/S : 3L Assessed Income : 13L CIT (A) AO ( ) Second Appeal ITAT First Appeal Reopen RI : 6L Assessed Income : 3L I/O/S : 3L Re assessed Income : 6L effect Order Direction I/O/S u/s 254 Order referred 3L In favour of to in Mr. X Sec.153(6)(i) Notice AT ANY TIME Sec. 153(6)(i) Completion T/L: 12 Months To Exclude From TI of Mr. X TO Include in TI of Mrs. X

26 (4) X Ltd Return TI : 5L Deemed T/I () B.P. : 70L MAT 143 (1) AO Asstt. 5L 2.5L 7.5 L (A/I) Tax = 22.5L U/R/I Tax 70L 20L 90L Assessed. Deemed TI Base 143 U/R/I Asstt. Nor. Prov. 5L 2.5L 7.5L MAT 70L Prov. [ Part : 0.5L]* 20L [ Part : 0.5L]* U / R/ I : (A B ) + ( C D) 90L 2.5L 19.5L 22L U/R/I [ ] 7. 5L 7.5L 90L 90L ( ) 2.5L 19.5L 70.5L 2.5L 19.5L U/R/I : 22L Tax Tax Penalty... Base Penalty ()

27 Mr. X = 15/10/16 To 15/11/16 = = 32 days T/L for Appli. U/R/I 1/10/16 15/10/16 31/10/16 30/11/16 2/12/16 143(3) Order Recd. by Mr. X Oct Month 30/11/2016 Appli. for Immunity u/s 270AA Oct Month 30/11/2016 T/L for Appeal 31/10 32 days 30 2 (Nov.) (Dec.) 2/12/16 15/11/16 R/O Recd. AO Order u/s 270AA 30/11/16 T/L for order u/s 270AA M /R/I Otherwise F/T/L for Appeal Immunity Condn. Payment Appeal (X) In other case AO : Reject AO : Shall Immunity Mr.X : Asstt. Order Appeal Revision ( X) ( X) O /O/B/H Mr. X : Asstt. Order Appeal / Revision T/L for Appeal 2/12/2016 ()

28 Mr. A (4) U/R/I : 5L (4) U/R/I : 4L (3) U/R/I : 2L (3) U/R/I : 4L U/R/I stands for Under reported income. (2) U/R/I : 3L (1) U/R/I : 4L Intangible Additions Intangible Additions No A.Y. A.Y. A.Y. 1/10/ Asstt. u/s 143(3) Actual G/P : 10% A/G/P : 11% Presumptive G/P:15% P/G/P : 15% Pending Additions : 5L Additions : 4L (1) (2) (3) (4) FDR : 4L 3L 6L 10L Tax & Intt. Source OR OR OR OR Penalty for Underreporting Hotel Bill : 4L 3L 6L 10L of Income X Unexplained Investment Unexplained Expenditure Metout/ create A.Y. A.Y. A.Y [Permitted by SC ] U/R/I : 4L U/R/I : 5L U/R/I : 1L Tax () Penalty (only) Intt. () Penalty() [Ananatha Ram Veera Singhaiah & Co. (SC)

29 Section 271AAB (a) Statement Undisclosed Income Admit Upto Specified For year of search () Date ** Due date u/s 139(1) Manner () Tax ROI For Immediate & & preceding P/Y Substantiate Intt Undisclosed () Income Time Limit for ROI Payment () under Notice () u/s 153A Quantum of Penalty : Undisclosed Income X 10%... Statement Undisclosed Admit upto Specified date Same* (b) Income Meaning Tax & ROI (as above) Intt. (&) Undisclosed Income () Quantum of penalty : undisclosed Income X 20%... (c) In any other case : Quantum of penalty Undisclosed Income 30% To 90%... 60%...

30 273A (1) : CIT : Wide power (Discretionary Nature). Suo motu OR on the Application of the assessee. Reduction OR waiver of Penalty u/s 271(1)(c) or 270A Imposed Penalty Order () Fully co operate ( ) Certain conditions Imposable e.g. SCN But P/O Tax & Interest Payment Satisfactory Arrangement CIT: Shall Exercise Before detection Assessee Full & true by AO Good disclosure Mandatory ( ) faith 273A (4): CIT : wide power (Discretionary Nature) on the Application Of the Assessee. Reasons Must be recorded in writing. ANY PENALTY. Reduction / Waiver of any Penalty or Stay / Compound of recovery proceedings. Genuine hardship () Certain Conditions Fully co operate () Amt. of Penalty > 1L CIT DG / CCIT or Aggregate Amount > 1L order Prior of penalties Approval Required ()

31 Sec. 80JJAA: Not Acquired from any other person. Business Assessee Existing Busi. Splitting up/ Re Cons. Form Sec. 44AB Subject to Exception [of Sec. 45 (IA) Circumstance] Addl. Employee cost X 30% = Ded. For 3 years. u/s 80JJAA ROI Report from C.A. In case of Total Emoluments To Any sum paid / payable In Lieu of his Employment Except 1. Employer contribution towards pension fund, provident fund or other welfare fund. 2. Lump sum payment at the time of Retirement or Termination e.g. gratuity, Etc. Additional Employees * Employee Employed during the P.Y. Has incremental effect on total no. of employees As on last day of last year. Exceptions* Employee 1. Total Emoluments > 25,000 P.M. 2. Entire contribution towards Notified pension scheme by Govt. on his behalf. Existing Business NIL If.. 1. No incremental effect in Total No. of Employees as on last day of Last Year. 2. Emoluments paid by any Mode Except A/C Payee chq. A/C Payee DD ECS thru Bank A/c. New Business Total Employees Employed during First Year Emoluments Addl. Employee Cost 3. Employed during < 240 / 150 Days Relevant P.Y. (as the case may be) 4. RPF Participate (x)